Farmers are set to benefit from a new £150m funding round, as the government reopens the capital grants scheme aimed at supporting more sustainable farming practices.
The funding will support a wide range of on-farm improvements – from tree planting and flood prevention to upgraded slurry systems and water filtration.
The initiative is intended to help farmers in England to improve profitability while also protecting natural resources such as soil and water.
Last year, the scheme contributed to the planting of over 4,000 miles of hedgerows and the modernisation of slurry infrastructure – measures credited with delivering real environmental benefits and supporting farm resilience.
Under this latest round of the capital grants offer, farmers and land managers can apply for funding for a total of 78 capital items.
These range from natural flood management and improving water quality to measures that support biodiversity and habitat restoration.
Four new items have been added this year: Assessing woodland condition; creating wildfire management plans; repairing dry stone walls; and hosting educational visits.
Unveiling the scheme today (3 July), Defra Secretary Steve Reed said: “This major investment will give them the tools to cut pollution, restore nature, and grow their businesses.
“It forms part of the record £11.8 billion we’ve committed to sustainable farming during this parliament – boosting food security, supporting rural growth, and protecting the environment.”
Changes to the scheme have also been introduced to widen access and ensure more farm businesses can benefit.
New funding limits have been applied to four of the six item categories, with maximum allocations of £25,000 each for water quality, air quality, and natural flood management and £35,000 for boundaries, trees, and orchards
Applications can include items from each of the six categories, allowing flexibility while helping to manage overall budgets more effectively.
Victoria Vyvyan, president of the Country Land and Business Association (CLA), welcomed the relaunch, but urged government to ensure delivery is reliable, particularly following delays to other schemes.
“The launch of a new round of capital grants is welcome news for farmers at a time when there are few schemes open for which they can apply, especially in the wake of the Sustainable Farming Incentive abruptly closing,” she said.
“The capital grants scheme was unexpectedly paused in the autumn and farmers need confidence that this round will run smoothly.
"It is pleasing to hear that four more items will soon be added to the capital grants offer, including accreditation for educational access visits and installing signs, and we encourage farmers to look closely at the options.”
Defra has pledged to use farmer feedback to shape future rounds of the scheme, with the next offer expected in 2026.
